Surrey-based accountancy firm TWP is urging businesses and individuals to get ahead of the 5 April 2025 tax deadline to make the most of available tax-saving opportunities.

With allowances resetting at the end of the tax year, failing to act now could mean missing out on valuable reliefs.

Andrew Goddon, Partner and Head of Taxation Services at TWP, said: “Every year, we see people leaving their tax planning until the last minute, which can lead to unnecessary costs.”

“Reviewing your finances and adjusting tax plans can help you ensure you’re not paying more than needed. Given recent changes to tax rules, businesses and individuals need to be even more proactive to make sure they don’t lose out.”

Businesses, in particular, should be looking at tax reliefs and deductions, especially with Corporation Tax rates remaining at 25 per cent.

“Investing in assets before the tax year ends could result in significant savings under the Annual Investment Allowance,” Andrew explained.

“For companies with profits between £50,000 and £250,000, the impact of marginal relief means that maximising deductions is particularly important. Reviewing spending now can help businesses take full advantage of these allowances.”

Andrew also highlighted the importance of Research & Development (R&D) tax relief. “With changes to R&D rules introduced in 2024, businesses need to be sure they submit compliant claims and make the most of the relief available.”

“This can be a complex area, but for businesses engaged in innovation, it remains one of the most valuable tax incentives.”

Another area TWP warned businesses not to overlook is the need to review any outstanding director’s loan accounts.

“If director’s loans aren’t repaid within nine months of the company’s year-end, a 33.75 per cent tax charge could apply,” Andrew warned.

“Too often, businesses forget about these liabilities until it’s too late, but if they make appropriate plans now, it can allow for structured repayments or alternative solutions.”

Tax planning is not just something business can benefit from – it can also make a big difference for individuals and their families.

“Those earning over £100,000 should consider pension contributions or charitable donations to retain their full Personal Allowance.

“Not only could this reduce your tax bill, but it will also help you effectively plan for a secure financial future,” Andrew said.

“With the annual pension allowance set at £60,000, maximising your contributions is a great opportunity to boost your retirement savings.”

Business owners should also think carefully about dividend withdrawals, as the tax-free allowance is now just £500.

“For those in higher tax bands, dividend taxation can take a significant chunk out of earnings,” Andrew noted. “Strategic planning could include spreading dividend payments across multiple tax years, which can help mitigate unnecessary tax liabilities.”

For those with assets to sell, making the most of the Capital Gains Tax (CGT) exemption before the year-end is another key area.

“The annual CGT exemption has been significantly reduced to £3,000, making it especially important to plan disposals carefully,” Andrew explained.

“Spouses and civil partners can transfer assets tax-free to double this exemption, which is a simple but effective way to minimise tax exposure.”

TWP strongly recommends seeking professional advice to make informed decisions before the 5 April 2025 deadline.

“We understand that figuring out where and how to save on your tax bill isn’t always easy, especially with all the changes the Government makes. What worked for you last year might not be the case this year, and vice versa,” Andrew concluded.

“If you want expert advice tailored to your circumstances, helping you keep more of your hard-earned money and avoid unnecessary tax bills, I highly recommend getting in touch with our experienced accountants at TWP.

“We will help you create strategic tax plans to reduce your liabilities and protect your income.”